Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Diamond Foods Shares Plunged: What You Need to Know

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes—just in case they’re material to our investing thesis.

What: Another day, another big move for snack and nut kingpin Diamond Foods (Nasdaq: DMND  ) . Today, shares slid as much as 11% on reports that the U.S. Department of Justice has joined the list of agencies investigating the company.

So what: The company was already under investigation for its accounting practices around payments to walnut growers. The revelation of the criminal investigation is just the latest chapter in the debacle, but it is once again raising concerns that the company's deal to buy Pringles from Procter & Gamble (NYSE: PG  ) may be in jeopardy. The deal was expected to be financed largely with Diamond stock and Reuters noted the suspicion that payments to walnut growers may have been delayed in order to make Diamond's earnings look better while negotiating the deal.

Now what: As 2011 closed out, Diamond shares got a bump from rumors that hedge fund magnate David Einhorn was buying. I've yet to see evidence that that rumor ended up proving true. And if Einhorn did buy, he didn't buy a substantial enough stake that it had to be reported immediately.

What we do know, as of yesterday, is that some major Diamond shareholders have dumped their stakes in the company. Both Del Mar Asset Management and Baron Capital filed paperwork showing that they'd sold substantially all of their shares in Diamond. As of Sept. 30, Del Mar owned 8.7% of the company and Baron had a 6.9% stake.

Want to keep up to date on Diamond Foods? Add it to your watchlist.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1757907, ~/Articles/ArticleHandler.aspx, 10/26/2016 3:47:57 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 6 hours ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
DMND.DL $0.00 Down +0.00 +0.00%
Diamond Foods CAPS Rating: **
PG $86.97 Up +2.87 +3.41%
Procter and Gamble CAPS Rating: ****